At the moment, one of the biggest challenges is how to reopen the economy affected by the coronavirus pandemic. Moreover, countries should take into account that pandemic is not over, so governments should be careful when dealing with such issues.
European governments are starting to think about how to reopen factories, offices, and so on while minimizing the chance of further outbreaks. For example, Austria plans to gradually reopen shops after Easter. This, Austria will become the first country to make such a decision.
Moreover, the pressure is mounting on governments, as people want to know more about their plans. It is not surprising as companies, as well as individuals, are trying to cope with the ongoing coronavirus crisis. Furthermore, restrictions implemented by authorities may have a negative impact on food supplies and health care provisions. This may happen if the restrictions are in place for too long.
It is important to mention that, lockdowns are likely to remain for weeks and in the case of some countries even for months. Nevertheless, private as well as governmental organizations should come up with a detailed plan on how to help vulnerable people and economies.
Europe’s largest economy and coronavirus
Germany has the largest economy in Europe and one of the largest in the world. A group of economists, lawyers, and medical experts came to the conclusion that Germany should reopen its economy step-by-step to avoid further outbreaks.
As a result, the economic powerhouse would allow reopening specific industries. According to the report, prepared by academics, they do not expect a vaccine or effective treatment before 2021. This report was prepared by academics and published by the Ifo Institute for Economic Research.
Based on this report, it is important to ensure good health care. However, the German government should come up with a plan regarding the transitional period.
As a reminder, Germany closed schools as well as restaurants, sports facilities, and most shops until at least April 20. The country’s economy was already struggling to deal with problems even before the coronavirus pandemic. However, coronavirus created additional pressure on the economy. Moreover, Ifo expects the country’s gross domestic product (GDP) to shrink 20% in 2020 if the lockdown lasts for three months.
The German government plans to support the economy thanks to the $825 billion rescue package. The government plans to support furloughed workers as well to take stakes in companies. Moreover, the country’s government plans to take other measures as well.